One of the most important documents at the enterprise is considered to be the financial statements of the enterprise, which can practically “diagnose” the business. But for the correctness of this diagnosis, it is necessary to understand and correctly read the balance sheet and statements. There are not so few figures in the balance sheet, but if you want, you can figure out everything and learn to read reports, it will be interesting and useful. Real managers, apart from everything else, simply must be a little accountants, because the financial situation of their company can only be ascertained in this way.
The financial statements of an enterprise help assess its solvency, financial stability and property status, as well as other results that are needed to substantiate many decisions (for example, it is beneficial to provide or extend a loan, establish the degree of reliability of business communications).
Using reporting, you can assess the need for financial resources, determine the financial results of the institution, the effectiveness of the capital structure, predict and solve other problems associated with managing financial activities and financial resources. First of all, this relates to financial firms that issue and place securities. The financial statements of the enterprise should satisfy the needs of internal and external consumers of information. The financial reporting forms and their volumes are established by the Ministry of Finance of the Russian Federation.
The financial statements of the enterprise include indicators of all representative offices, branches and other units (those that have separate balance sheets are also included in the structure).
The financial statements of the enterprise are able to reflect the financial and property status of the organization and the results of its business activities. It is compiled based on accounting data and calculations.
In the reporting period, the last calendar day is the date on which reporting is made. The reporting year is the period from the first of January to the thirty-first of December.
For organizations that are newly created, the first reporting year is determined by the period from the date when their state registration took place until the thirty-first of December, and for institutions that were created after the first of October, by the thirty-first of December of the next year.
The financial statements of organizations, institutions - this is the final stage in the accounting process.
Reporting is presented in the form of tables that are filled in according to analytical and synthetic accounting.
The financial statements of the organization helps to assess the creditworthiness of the enterprise, that is, how timely and fully the company is able to calculate its obligations. It can help identify fast-moving, difficult and slow-moving assets, as well as the most liquid assets.
Reporting enterprises can traditionally be classified by type. It is operational, statistical and accounting.
The frequency of reporting is divided into annual and intra-annual. Consolidated reporting and primary reporting - according to the degree of generalization of reporting information.
Reporting is one of the main techniques of the accounting methodology. The financial statements of institutions, organizations, enterprises - this is the branch of accounting reporting that records information about the activities of institutions, organizations, enterprises.
In accounting, there are specific standards for reporting and accounting, which are adopted in countries of a market economy.